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Gym Group revenues rise as membership numbers grow, new sites opened
The Gym Group reported a rise in full-year revenue on Tuesday as membership numbers grew and the company opened more sites.
In a trading update for the year to the end of December, the operator of low-cost gyms said revenues were up 24.3% compared to the previous year, with total year-end membership numbers 35.5% higher at 607,000 as new openings and the existing estate traded strongly.
Meanwhile, site numbers were up 44% to 128 at year-end, with 21 organic openings and 18 sites acquired from Lifestyle Fitness. The company said its estimated share of the low-cost gym market rose to 22.4% from 17.7% in 2016.
The Gym Group said its earnings for 2017 are expected to be in line with market forecasts.
Chief executive officer John Treharne said: "This has been another year of accelerated, profitable growth with a record number of newly developed gyms and the acquisition of the Lifestyle Fitness gyms. We are the fastest growing low-cost gym operator, have significantly increased market share and after 10 years of operation are still breaking records, underlining the resilience of our proposition and the constant evolution of our offer. We have had 100 million gym visits since launch in 2008, and our membership of over 600,000, would fit into Wembley, Twickenham, the Bernabeu, the MCG, Old Trafford, Croke Park and the Nou Camp combined.
"Looking ahead, we have a very strong foundation and a proven rollout model from which to build the business and increase its profitability further: we expect to open a further 15-20 new gyms in 2018 with more in the first half than in recent years. I have every confidence that our very experienced and innovative team is primed to deliver the next stage of our development."
At 1255 GMT, the shares were up 1.7% to 230.94p.